Strike’s CEO Jack Mallers has announced yesterday that his platform is soon to become the cheapest space where people can buy and sell Bitcoins. In addition, Mallers decision could make that the prices in the cryptocurrency market become extremely cheap and one-step was for Strike to collaborate with the El Salvadorian government for the adoption rollout of the BTC.
Could this be the end for the high fees of Coinbase and other payment platforms?
There are many payment platforms out there and perhaps the most direct competitors of Strike are Coinbase, Paypal and Square. Strike will offer a special tab for BTC and no extra fee will be charged except of the market spread. This means that the cost could go from 0.3 percent to 0.1 in the following months.
Strike is not the only one
Although Mallers present the initiative very enthusiastically, but the Robinhood trading app also offers no fee for crypto trading in certain states. Using the Robinhood trading platform investors can trade funds, stocks, cryptocurrency and tradestocks without paying a trading fee or extra commissions.
Mallers criticized Coinbase
Coinbase is a crypto company from San Francisco and by August 2020 it had raised more than 547 million dollars. Thanks to its trading fees, which Mallers considers exaggerate, in 2021 Coinbase made 771 million dollars in profit.
Coinbase and fee compression
Brian Armstrong, CEO of Coinbase, has declared that in the next five to ten years he expects Coinbase to have lower transaction fees. This would mean that the company would shift its focus from transaction fees to debit cards, educational programs and charging institutional customers more. However, the process will not be a speedy one and one might understand why considering the fact that 96 percent of the revenues of the company in 2020 were thanks to the transaction fees.